Factoring Refers to

question 75

Multiple Choice

Factoring refers to

• A)determining the aging schedule of the firm's accounts receivable.
• B)the sale of a firm's accounts receivable to another firm.
• C)the determination of the average collection period.
• D)scoring a customer based on the 5 C's of credit.

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Definitions:

Donee Beneficiary

A third party who benefits from a contract between two other parties, especially in cases involving the transfer of a gift or a donation.

Promisor

In a third-party beneficiary contract, the party to the contract who made the promise that benefits the third party.

Third-Party Beneficiary

An individual or entity that, though not a party to a contract, stands to benefit from its execution.

American Rule

A legal principle stating that each party in a lawsuit is responsible for its own attorney's fees, except if otherwise provided by statute or agreement.